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Happy Tuesday and Welcome to Export Brief. A weekly newsletter with insightful developments and trends on non-oil export trade from Africa's largest economy and from the global stage. If you enjoy EB, share it with friends. 

• ⏲️: This edition is 1268 words, a 4-minute read.

IN BRIEF

⚡ Situational awareness: The Central Bank of Nigeria (CBN) monetary policy meeting (MPC) comes up 23rd - 24th January, 2023. The meeting outcome is likely a no-rate hike. 

• AfCFTA: To boost Nigeria’ non-oil export by over 15%

• Nigeria records 39.91% increase in non-oil export 2022

TRADE 

1 big brief: AfCFTA reforms to boost Nigeria’ non-oil export by over 15%

The Managing Director of NPA, Mohammed Bello Koko and Mr. Ademola Adegoroye, Minister of State for Transportation, the Board Chairman, and heads of agencies to the 9th African Shippers’ Day at Oriental Hotel, Victoria Island, Lagos. Picture: NPA

The African Continental Free Trade Agreement (AfCFTA) reforms will increase Nigeria’s non-oil exports to other African countries by more than 15 percent. Nigeria's government stated this at the ninth African Shippers’ Day with the theme: “African Continental Free Trade Agreement: A Veritable Platform for African Shippers to Mainstream Into Global Trade” held in Lagos.

Why it matters: As a result of Nigeria’s sheer economic size, the country is among African nations expected to experience the largest, absolute expansion in intra-African exports and also the ECOWAS member expected to receive the largest boost to intra-African exports.

By the numbers: The United Nations Economic Commission for Africa (ECA) projected that AfCFTA could boost intra-Africa trade by 52 percent, with the industrial sector forecast to gain the most.

• The Gross Domestic Product (GDP) and exports would increase by $44 billion and $56 billion respectively, while AFCFTA could potentially increase jobs and move informal traders into the formal sector.

💬What they're saying: “In Nigeria, we have realised that AfCFTA would be a game changer when it comes to stimulating intra-African trade because the more ambitious the trade liberalisation, the greater the expansion of Nigerian exports to its African partners,” - Muhammadu Buhari, Nigerian President.

The bottom line: The establishment of the AfCFTA presents major opportunities for production and exports, creates employment, and limits the impact of commodity price volatility on the economies of various African countries.

TRADE ROUNDUP

EXPORT | Nigeria records 39.91% increase in non-oil export 2022

• Nigeria recorded an increase of 39.91% over 2021 in the 2022 Non-Oil Export Performance Review. The Nigerian Export Promotion Council said it translates to US$ 4.820 billion in non-oil export earnings for 2022, the highest in the agency’s 47- year history.

PORT | Mexico seeks to increase exports to African nations

Mexico’s largest trade partner is easily the United States, but it also has commercial relationships with nations located far beyond the region in which it is located.

• Among the country’s lesser-known trade partners are numerous African nations, and the federal government is seeking to increase Mexican exports to that continent.

UPCOMING TRAINING - PORT HARCOURT

A MESSAGE FROM GGI

Climate Action: With exploration comes the need for expertise and sustainability

At GGI, we combined expertise, innovation and sustainable practices in meeting our client's engagements. Our actions to mitigate climate change are central to making the world a better place. Learn more.

IEOM

The Institute of Export Operations & Management, as a Trade Support Institute is out to stimulate and facilitate non-oil export in Nigeria. Our vision is to become the foremost independent provider of export training and best research practice in Nigeria. In line with our mission, our intensive training progams both online and on-premise among others are designed to optimize your trade capacity and knowledge. We actualize this through the following: 

• Access to Low-Interest Loan from our partner Bank*

• Export breakfast meetings

• The Export Brief magazine

• Seminars and workshops

• Banker and Exporter training

• Trade access and facilitation

Trade Intelligence Unit (TIU) is a division of IEOM Nigeria, providing export trade information, research, insights and analytics for organizations, agencies of government, businesses and individuals to help them make informed decisions. We help our clients by leverage on our proprietary tools to create access into our rich trade database in delivering innovative solutions.Join us in our quest to make Africa's largest economy to be self-sufficient through non-oil export and become a member of IEOM.*We have partnered with Standard Chartered Bank Nigeria in creating access to low-interest loans for our MSMEs members.For enquiries on memberships, trainings and collaboration on sponsorships of events, newsletters and magazine you can reach us on+234 909 332 8361, +234 808 302 [email protected]. 

THE COVER PAGE 

Courtesy: The Economist

1The Economist was founded in 1843to champion the cause of free trade. Open markets and limited government still lie at the heart of our worldview. The cover this week draws on those principles, to warn of a looming threat to ideas that have helped bring about an astonishing improvement in people’s lives.

• An era of zero-sum thinking has begun. Countries are racing to subsidise green industry, lure manufacturing away from friend and foe and restrict the flow of goods and capital. Mutual benefit is out and national gain is in.

• For many in Washington, muscular industrial policy holds a seductive appeal. America has unleashed vast subsidies, amounting to $465bn, for green energy, electric cars and semiconductors. These are bolstered with requirements that production should be local. Bureaucrats tasked with scrutinising inward investments to prevent undue foreign influence over the economy now themselves hold sway over sectors accounting for 60% of the stockmarket’s value.

• Fans argue that this will help seal America’s technological ascendancy over China, which has long pursued self-sufficiency in vital areas using state intervention. As carbon pricing is politically unfeasible, it could also foster decarbonisation. And it reflects a hope that government intervention will succeed where private enterprise failed, by reindustrialising America’s heartlands and even reviving support for market capitalism.

• Such thinking is misguided. If zero-sum policies are seen as a success, abandoning them will become only harder. In real­ity, even if they do remake American industry, their overall effect is more likely to cause harm by corroding global security, holding back growth and raising the cost of the green transition. Even when it is inspired by the best of motives, zero-sum thinking threatens to make everyone poorer and the world more dangerous.

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TWEET OF THE WEEK

PHOTOS OF THE WEEK

AFRICAN SHIPPERS' DAY: 1. Executive Secretary/CEO of IEOM, Mr. Ofon Udofia, with a representative Dorcas Joshua at the IEOM exhibition stand of the ongoing 9th African Shippers' Day in Lagos, Nigeria. 2. A representative Esther Ugwu at the National Shippers Association (NSAN) exhibition stand.